Technical Efficiency of Small-Holder Cocoyam Farmers in Anambra State, Nigeria: Implications for Agricultural Extension Policy

Okoye, B.C and Onyenweaku, C.E and Agwu, A.E (2006): Technical Efficiency of Small-Holder Cocoyam Farmers in Anambra State, Nigeria: Implications for Agricultural Extension Policy. Published in: Journal of Agricultural Extension , Vol. 12, No. 1 (2008): pp. 107-116.

Abstract

This study employed the Cobb-Douglas stochastic frontier production function to measure the level of technical efficiency in small-holder cocoyam production in Anambra state, Nigeria. A multi-stage random sampling technique was used to select 120 cocoyam farmers in the state in 2005 and from them input-output data were obtained using the cost-route approach. The parameters of the stochastic frontier production function were estimated using the maximum likelihood method. The result of the analysis shows that individual farm level technical efficiency was about 95%. The study found education and farming experience to be positively and significantly related to technical efficiency at 1% while practice index, fertilizer use and membership of cooperative societies also had a direct relationship with technical efficiency and were significant at 5% level. Age and farm size had an indirect relationship with technical efficiency and was significant at 1% and 5% level respectively. There were no significant relationship between technical efficiency and knowledge index, credit access and family size. Expected increases in agriculture require increase in agricultural productivity. In other words, agricultural productivity very much depends on the efficiency of the production process. Hence, policies designed to educate people through proper agricultural extension services will have a great impact in increasing the level of efficiency and hence agricultural productivity of these farmers.

• Item Type: MPRA Paper
• Language: English
• Keywords: Technical Efficiency, Stochastic Frontier Production Function and Extension Service.
• Subjects: Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q1 - Agriculture; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q1 - Agriculture > Q19 - Other; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q1 - Agriculture > Q10 - General

References

Aigner, D.J, Lovell C.A.K, and Schmidt, P (1977). “Formulation and Estimation of Stochastic Frontier Production Function Model.” Journal of Econometrics, Vol.1 No.1 pp.21-37.

Ajibefun, I. A and Daramola, A.G. (2003) Efficiency of Micro Enterprises in the Nigerian Economy. AERC Research paper 134. African Economic Research Consortium, Nairobi

Ajibefun, I.A and Aderinola, E.A (2004) Determinants of Technical Efficiency and Policy Implication in Traditional Agricultural Production: Empirical Study of Nigerian Food Crop Farmers. Final Report Presentation at Bi-annual Research Workshop of African Economic Research Consortium. Nairobi, Kenya.

Ayichi, D. and Madukwe, M. C. (1996) A comparative Analysis of Production Efficiency of Contact and Non-contact Farmers in Nigeria. Journal of Agriculture, Technology and Education Vol 1 (No. 2). pp 41- 45.

Basnyat, B.B.(1995) Nepal's Agriculture, Sustainability and Intervention: Looking for New Direction. Ph.D Thesis , Wageningen

Coelli, V.J (1996) Guide to Frontier Version 4.1: A Computer Program for Stochastic Frontier Production and Cost Function Estimation. Department of Economics, University of New England, Armidale, Australia.

Ene, L. S. O. (1992). Prospects for Processing and Utilization of Root and Tuber Crops in Africa. In: Akoroda, M. O. and Ngeve, J. M. (eds.). Proceedings of the 4th Triennial Symposium of the International Society for Tropical Root Crops (ISTRC). Pp7 – 16.

Ezedinma, F. O. (1987). Prospects of Cocoyam in the Food System and Economy of Nigeria. In: Arene, Ene, L. S. O., Odurukwe, S. O. and Ezeh, N. O. A (eds.). Proceedings of the 1st National Workshop on Cocoyam. Pp. 28- 32.

FAO Statistics (2006) Data base Results

Hazarika, C and Subramanian, S.R. (1999) Estimation of Technical Efficiency in the Stochastic Frontier Production Function Model – An Application to the Tea Industry in Assam.

Howeler, R.H., Ezumah, H.C and Midmore, D.J. (1993) Tillage Systems for root and tuber crops in the tropics. In: Soil and Tillage Research. 27: 211 – 240.

Hussain, S.S (1989). Analysis of Economic Efficiency in Northern Pakistan PhD Dissertation, Univesity of IIIinois Champaign –Urban, IIIinois, U.S.A.

International Institute of Tropical Agriculture (1992). Sustainable Food Production in sub-Saharan Africa. IITA’s Contributions. International Institute of Tropical Agriculture, Ibadan, Nigeria.

Landon Lane, C. and Powell, A. P. (1996). Participatory Rural Appraisal Concepts applied to Agricultural Extension: A Case Study in Sumatra. Quarterly Bulletin of IAALD, 41(1), 100-103.

Lau, L. J. and Yotopoulos (1971) A test for Relative Efficiency and Application to Indian Agriculture. American Economic Review, Vol. 61 No. 1, pp 94 – 109.

Meeusen N. and Van den Broeck, J (1977). Efficiency estimation from Cobb Douglas prodduction function with composite error. International Economic Review , Vol 18 No 2pp: 123-134.

National Population Commission, (1991). Nigeria’s 1991 Population Census (NPC), Lagos.

Nkematu J.A. (2000). Anambra State Agricultural Development Project Extension Services Report for 1999. In Proc. of the 14th Annual Farming Systems Research and Extension workshop in South Eastrern Nigeria, 9-12 Nov.pp100-105.

Olaniyan, G. O., Manyoung, V. M. and Oyewole, B. (2001). The Dynamics of the Root and Tuber Cropping Systems in the Middle belt of Nigeria. In: Akoroda, M. O. and Ngeve, J. M. (eds.). Proceedings of the 7th Triennial Symposium of the International Society for Tropical Root Crops (ISTRC). Pp75 – 81.

Osagie, P.I.(1998) Transfer of Root Crop Technology for Alleviation of Poverty; the Contribution of Shell, Nigeria. In ; Akoroda, M. O. and Ekanayake, i. J (eds.). Proceedings of the 6th Triennial Symposium of the International Society for Tropical Root Crops. Pp 38 – 41.

Parkinson, S (1984). The Contribution of Aroids in the Nutrition of People in the South Pacific. In: Chandra, S (ed.). Edible Aroids. Clarendon Press, Oxford, U.K pp 215-224.

Plucknet D.C (1970). The Status and Future of Major Aroids (Colocosia, Xanthosoma, Alocasia, Crystosperma and Amorphol. Phallus. In Tropical Root Crops Tomorrow. Proceedings of International Symposium on Tropical Root Crops. Hawai, Vol.1. pp 127-135

Ratna, K.J., Gyawali, L.N., Regmi, A.P., Ghimire, A and Paudyal, K.R (2007) Impact of Participatory Extension Program on technical Efficiency of Farmers in Nepal. Paper submitted to South Asian Network of Economic Institute (SANEI), Centre for Rural Development and Self-Help (CRDS) Kathmandu, Nepal, Nov. 2007

Skott, G. J., Best, R., Rosegrant, M. and Bokanga, M. (2000). Root and Tubers in the Global Food System: A Vision Statement of the Year 2020. International potato Centre: Lima, Peru.

Splitstoesser N. E, Martin, F.W and Rhodes, A.M (1973). The Nutritional Value of SomeTropical Root Crops. Proceedings of the Tropical Region of the American Society for Horticultural Sciences. Vol 17 pp.290-294.

Tambe, R. E. (1995). The Economics of Cocoyam Production by Small Holder Farmers in Manyu Division, South west Province of Cameroun. M.Sc Project Report. Department of Agricultural Economics, University of Nigeria, Nsukka.

Udealor A., Nwadukwe, P.O and Okoronya, J.A (1996). Management of Crop Production: Crops and Cropping Systems. In Odurukwe S.O and A. Udealor (eds) Diagnostic Survey of Farming System of Onitsha Zone of Anambra State. Agricultural Development Project. National Root Crop Research Institute, Umudike pp.33-52.

Umali, D.L. and Schwartz, L. (1994) Public and Private Agricultural Extension: Beyond Traditional Frontiers. World Bank Discussion Paper No. 236.Washington, D.C.: World Bank.22